What is Chocolate Fish Coffee's obligation to protect a franchisee's right to use the trademarks?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
unaffected.
Protection of Rights
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third-party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Superior Prior Rights and Infringing Uses
We do not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks.
Item 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
Patents
We do not own rights in, or licenses to, patents that are material to the franchise. We do not have any pending patent applications.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Coffee is obligated to protect a franchisee's right to use the principal trademarks. Chocolate Fish Coffee will protect franchisees against claims of infringement or unfair competition arising out of the use of the trademarks. The franchise agreement requires franchisees to notify Chocolate Fish Coffee of any identical or confusingly similar trademark uses or claims. However, Chocolate Fish Coffee is not required to take any affirmative action upon notification of these uses or claims, but has the right to control any administrative proceedings or litigation involving a licensed trademark.
Chocolate Fish Coffee is responsible for defending the franchisee (at Chocolate Fish Coffee's expense) against any legal action by a third party alleging trademark infringement, provided the franchisee uses the trademarks according to the franchise agreement. Chocolate Fish Coffee will also cover expenses and damages if any legal action is resolved unfavorably to the franchisee.
Chocolate Fish Coffee may require a franchisee to modify or discontinue using a trademark, and the franchisee will bear the expense. Chocolate Fish Coffee states that it is unaware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks. The principal trademarks licensed to franchisees are owned by Nzus, Corp, an affiliate of Chocolate Fish Coffee, and are registered on the Principal Register of the United States Patent and Trademark Office. These include the trademark with registration number 6042416 and Chocolate Fish Coffee Roasters with registration number 6042407, both registered on April 28, 2020.